KUALA LUMPUR (April 30): Based on corporate announcements and news flow today, companies that may be in focus on Monday (May 3) include: FGV Holdings Bhd, MSM Malaysia Holdings Bhd, IHH Healthcare Bhd, Mr DIY Group (M) Bhd, Priceworth International Bhd, KLCCP Stapled Group, Sapura Resources Bhd, Sapura Energy Bhd, Malayan Banking Bhd, Al-'Aqar Healthcare REIT, Top Glove Corp Bhd, Fajarbaru Builder Group Bhd and Sarawak Oil Palms Bhd.
FGV Holdings Bhd's (FGV) subsidiaries, MSM Malaysia Holdings Bhd (MSM) and FGV Integrated Farming Holdings Sdn Bhd (FGVIF), have entered into a binding term sheet on the respective disposal and acquisition of a 100% stake of MSM's wholly-owned subsidiary MSM Perlis Sdn Bhd. With an initial disposal consideration of RM175 million, the agreement is set to be completed by the third quarter of this year.
IHH Healthcare Bhd said it has completed the sale of its entire 50% equity stake in the Apollo Gleneagles Hospital Ltd, Kolkata (AGHL) joint venture to Apollo Hospitals Enterprise Ltd. The divestment is in line with the group’s refreshed strategy, which includes a review of its portfolio and capital deployment to optimise returns for shareholders, said IHH managing director and CEO Dr Kelvin Loh.
Mr DIY Group (M) Bhd said its net profit more than doubled to RM124.79 million for the first quarter ended March 31, 2021 (1QFY21), from RM58.46 million a year earlier, following substantially higher sales. Revenue jumped 62.93% to RM870.18 million, from RM534.09 million in 1QFY20, amid an increase in the number of stores to 788 from 628 and a 2.55% increase in average monthly sales per store. Total transactions rose 21.7% year-on-year to 29.9 million from 24.6 million, the group added.
Priceworth International Bhd has proposed the consolidation of every 10 of its shares into one share, along with the issuance of notes of up to RM100 million. The share consolidation will enhance its capital structure and will not have any impact on the market value of its shares. On its note issue, the group said it will be issuing 2% redeemable convertible notes due in 2024, worth RM100 million in aggregate nominal value.
KLCCP Stapled Group, which comprises KLCC Property Holdings Bhd and KLCC REIT Management Sdn Bhd, has appointed Md Shah Mahmood as its new CEO effective May 1. It said Md Shah would replace Datuk Hashim Wahir, who is retiring today after almost 14 years serving the group.
Sapura Resources Bhd’s net loss for the fourth quarter ended Jan 31, 2021 (4QFY21) narrowed to RM3.32 million from RM15.37 million a year ago. This was mainly attributable to a one-off provision for a claim from a previous customer of RM8.2 million and a one-off impairment loss of RM3.3 million in 4QFY20. Quarterly revenue, however, was down 14% to RM11.42 million from RM13.27 million, mainly due to lower revenue from the aviation segment.
SapuraOMV Upstream (Malaysia) Inc is disposing of its entire interests in several producing assets offshore Peninsular Malaysia to Jadestone Energy plc for US$9 million (RM36.95 million), subject to closing adjustments. SapuraOMV is a strategic partnership between Sapura Energy Bhd and OMV Exploration & Production GmbH, a subsidiary of Austria's OMV Aktiengesellschaft. SapuraOMV chairman Tan Sri Shahril Shamsuddin said the divestment will allow the company to consolidate its position to focus on discovered resources off the coast of Sarawak, as well as exploration opportunities in Western Australia.
Meanwhile, Sapura Energy said Datuk Iain Lo is joining it as an independent and non-executive director. Lo had recently retired as chairman of Shell Malaysia and has three decades of experience in Shell’s exploration and production, gas and downstream businesses, both in Malaysia and abroad. The group has also appointed Bernard di Tullio as a non-independent and non-executive director. He had served as the president and chief operating officer of Technip Group Worldwide from 2005 to 2011. Sapura Energy also appointed Datuk Mohd Anuar Taib as executive director, by virtue of his role as group CEO.
The US Customs and Border Protection has yet to lift its withhold release order against Top Glove Corp Bhd's products as the authorities are still reviewing the glove manufacturer’s submission on recent clarification over the resolution of the 11 International Labour Organization indicators of forced labour.
Malayan Banking Bhd’s Indonesian unit PT Bank Maybank Indonesia Tbk recorded a lower pre-tax profit of 501 billion rupiah (RM142.57 million) in the first quarter ended March 31, 2021 (1Q21), a decline of 31.8% against the same period last year. Its profit after tax and minority interest fell to 381 billion rupiah (RM108.4 million) during the quarter under review from 538 billion rupiah (RM153.1 million) previously, but rose 127.6% compared with 4Q20 as the bank capitalised on selective opportunities in an improving market through its digital banking services.
Al-'Aqar Healthcare REIT's funding conduit Al-'Aqar Capital Sdn Bhd will fully redeem the latter's RM1 billion Islamic bonds on Tuesday (May 4) in conjunction with the maturity of the medium term notes under the Islamic principle of Ijarah, according to facility agent Maybank Investment Bank Bhd.
Fajarbaru Builder Group Bhd is looking at launching new property projects towards the second half of 2021 once market conditions improve. The construction and property development outfit said it is upbeat on its property segment’s outlook in anticipation of the economic recovery complemented by the national Covid-19 Immunisation Programme. Fajarbaru group CEO Datuk Sri Eric Kuan said the property division remains a significant revenue generator for the group in addition to its core business in construction.
Sarawak Oil Palms Bhd (SOP) announced yesterday that it is acquiring the remaining 40% equity interest not already held by the company in SOP Plantations (Sabaju) Sdn Bhd (SOP Sabaju) from Shin Yang Holding Sdn Bhd for RM45.88 million cash. SOP said it had entered into a conditional share sale agreement with Shin Yang for the proposed acquisition. SOP Sabaju, currently a 60%-owned subsidiary of SOP, is involved in the development of oil palm plantations.